The ECGC Limited is a company wholly owned by the Government of India based in Mumbai, Maharashtra. It provides export credit insurance support to Indian. Besides above, ECGC also offers some Special Schemes, such as Transfer guarantees, (covering risk on transfer of funds), Scheme for Small Exporters. Special Schemes – ECGC. Suitability. Special schemes consists of bundle of covers addressing the needs of banks and investors in foreign venture. This apart .
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Where EPC is taken for a single guarantee, scgc bank is required to pay the full premium in advance. The political risk policy on the other hand provides protection against political risk policy. Applicable premium rates The premium rates will depend on the country to which exports are to be made and the repayment period.
The Exchange Fluctuation Risk: Terms of payment To be eligible for cover under specific policies, the terms of payment for the export contracts should be in line with customary practices in the international markets.
Ten percent of the total premium payable and premium for the first two years should be paid at the time of issue of the Policy. While the schemee rate for Guarantee issued to cover bond relating to exports on short-term credit is 0.
Banks may, in the interest of export promotion, consider opting for the Whole Turnover Post-shipment Policy. Two types of policies have been evolved to cover contracts with i Government buyers and ii Private buyers. The loss or gain within a range of 2 percent of scjeme reference egc will go to the exporter’s account. MumbaiMaharashtraIndia.
In case of Projects involving long construction periods, cover may be extended for a period of 15 years from the date of completion of the Project subject to a maximum of 20 years from the date of commencement of the investment.
Any investments made by way of equity capital or untied loan for the purpose of setting up or expansion of overseas Projects will be eligible for cover under investment insurance. To find out the premium payable for any particular contract, In order to be sure about the availability of the cover, exporters are advised to get in-principle approval of ECGC and obtain the premium rates well before concluding contracts.
Export Credit Guarantee Corporation of India
As the post-shipment guarantee is mainly intended to benefit the banks, the cost of premium in respect of the Whole Turnover Post-shipment Guarantee taken out by banks may be absorbed by the banks and not passed on to sscheme exporters. Specific Shipments Comprehensive Risks Policy provides cover against all the risks covered under the Standard Policy for shipments to be made under the contract in question For details of risks, click here.
Export of capital goods on deferred payment terms and execution of turnkey Projects, construction works contracts as also rendering of services abroad are collectively referred to as Project exports. Schdme case, the application for insurance is rejected, half the fee paid shall be refunded.
The period of insurance cover would not normally exceed 15 years. The amount of investment eligible for cover shall be to the full extent during the first 10 years of cover. The salient features of the scheme may be obtained from ECGC.
For further details go to http: This page was last schwme on 23 Novemberat Recommendations These scheme are targeted at specific audiences such as banks, investors in foreign countries and exporters taking up long term projects abroad, covering distinct risks faced by them. In order to protect such exporters ECGC has the following types of covers.
The scope for disputes is very large.
Under this agreement protection is available against political and economic risks such as transfer restriction, expropriation, war, terrorism and civil disturbances etc For covering construction contract, a Construction Works policy can be obtained.
The cover will be provided initially for a period of twelve schems and can be extended if necessary. Specific Contract Comprehensive Risks Policy; and 4. Features of this scheme are.
Special Schemes – ECGC
The insurance is provided by ECGC with the objective of enabling exporters to obtain the required guarantee facility from banks on easy terms.
Special schemes consist of bundle of covers addressing the needs of banks and Investors in foreign venture.
scgeme If the terms and conditions of the contract undergo any change subsequently, ECGC should be informed of the same, so that changes, if any, in the applicable premium rates can be ascertained. The rate of premium is 40 paise per Rs. ECGC may consider providing cover in the absence of any such agreement provided it is satisfied that the general laws of the country fcgc adequate protection to the Indian investments.
Normally, there should be a bilateral agreement between India and the host country for promotion and protection of Indian Investment.